Tracker mortgage deals remain cheap for those prepared to take a risk.
Tracker mortgage deals could be the way to go for those concerned about rising SVRs who don't want to switch to a fixed rate.
Recent headlines have been filled with details of rising mortgage rates. Several lenders has increased their SVRs with most changes coming into effect in just under a month on 01 May.
So following years of mortgage apathy, with mortgage-holders happy to sit on lenders low SVRs, remortgaging has become the buzzword as panic sets in over rising rates.
In light of the recent news it comes as no surprise that many are now considering opting for the safety of a fixed rate remortgage.
While a fix rate deal is a good decision for some it is not the right option for everyone. Those willing to take a little risk may find a tracker is a more rewarding product.
Tracker mortgage rates do fluctuate up and down but in a transparent way, such deals track the Bank of England base rate which is predicted to stay at an historic 0.5 per cent low for potentially another 2 to 4 years.
Unlike an SVR mortgage, providers cannot adjust tracker rates at will. You agree a deal based a certain percentage above the BOE base rate, your mortgage rate then moves in line with the Bank of England interest rate.
There is risk involved as the base rate can increase, but current predictions indicate a tracker could be a good option for some time to come.
If you are looking to compare tracker mortgage rates contact Deal Direct and we will source a deal for you from the entire UK mortgage market.
